Condo Financing  ·  Licensed in NJ, CT & FL  ·  NMLS #1630225

Condo Financing — Warrantable or Non-Warrantable, There Is Usually a Route

Condo financing is different from financing a house: the lender approves the building as well as the borrower. FHA (with 10% down) and VA reach down to a 500 credit score, but like conventional they need a warrantable project. When a building fails those tests, most banks simply decline. Non-QM, DSCR, and no-income-verification programs are built for the ones the agencies reject, including condotels and investment units. Mortgage-World.com (NMLS #1630225) is a licensed mortgage broker in New Jersey, Connecticut, and Florida.

Last updated September 2026 · reviewed by a licensed mortgage broker

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★★★★★ 5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
580Min Credit Score
3.5% Down Tier
500FHA Lower Tier
With 10% Down
600Non-QM Floor
Bank Statement
660Jumbo Condo
Above Conforming


Your Answer Right Here

How It Actually Works

On a single-family home, the lender underwrites you and the appraisal. On a condo, the lender underwrites you and the building. Once your file is in, a condo questionnaire goes out to the HOA covering owner-occupancy rates, investor concentration, budget and reserve funding, dues delinquencies, pending litigation, and how much of the property is commercial space. The answers decide which loan programs are available to you.

That is why a buyer with a 780 credit score and 30% down can still be declined on a condo — not because of anything in their file, but because the building failed a test they never knew existed. And it is why the program has to be matched to the project, not just to the borrower.

Buildings fall into two buckets. Warrantable projects meet Fannie Mae and Freddie Mac standards and open up FHA, VA, and conventional financing at the lowest down payments and best pricing. Non-warrantable projects fail one or more of those tests — and most banks stop there. We do not: Non-QM, DSCR, and no-income-verification programs are built to finance those buildings.


The Building Test

Warrantable vs. Non-Warrantable Condos

Building Status What It Means Programs Usually Open
Warrantable Meets Fannie Mae’s owner-occupancy, investor-concentration, budget, reserve, and litigation standards FHA, VA, conventional, and all Non-QM options
Non-Warrantable Fails one or more agency tests — often high investor concentration, active litigation, short-term rental use, heavy commercial space, or a new-construction budget that hasn’t matured Non-QM bank statement, asset-based, no income verification, and DSCR


Program Guidelines

FHA, VA & Conventional Condo Loans

These are the lowest-down-payment condo options, and all three require a warrantable building.

Program Min Credit Score Down Payment Building Requirement
FHA Condo Loan 500 3.5% with a 580 score; 10% with 500–579 Building must carry FHA project approval on HUD’s condo approval list, or the unit must qualify under FHA’s single-unit approval option
VA Condo Loan 500 0% Building must be VA-approved. Eligible veterans, active duty, and surviving spouses; no down payment and no monthly mortgage insurance
Conventional Condo Loan 620 3%–20% Warrantable only — follows Fannie Mae and Freddie Mac condo project review standards for investor concentration, HOA finances, litigation, and commercial space


When the Building Fails

Non-Warrantable & Non-QM Condo Loans

A non-warrantable building is not an unfinanceable building. These programs accept projects the agencies reject, generally in exchange for a larger down payment.

Program Min Credit Score Condo Type Best Fit For
Bank Statement 600 Warrantable & non-warrantable Self-employed buyers who qualify on 12–24 months of business or personal deposits instead of tax returns
Asset-Based 600 Warrantable & non-warrantable Buyers with strong liquid reserves and little or no reportable income
No Income Verification 640 Warrantable & non-warrantable Primary and second homes — no tax returns, W-2s, pay stubs, or bank statements reviewed
DSCR Investment 600 Warrantable & non-warrantable Investment condos only — qualifies on the unit’s rental income, not your personal income
Jumbo Condo 660 Typically warrantable Condo loan amounts above the conforming limit

Guidelines shown reflect standard published program guidelines and are current as of July 2026. Exact terms vary by lender overlay, credit profile, and the specific condo project. This is not a commitment to lend.


Why Buildings Get Flagged

What Makes a Condo Non-Warrantable

High Investor Concentration
When too many units are owned by investors rather than owner-occupants, the project fails agency owner-occupancy standards. Common in resort, beach, and downtown high-rise markets.
Pending HOA Litigation
Active lawsuits involving the association or the building’s structure make a project non-warrantable for agency financing until they resolve.
Short-Term Rental Programs
Buildings running active short-term rental or hotel-style programs are automatically flagged, and condotels are ineligible for agency loans entirely.
Thin Reserves or Budget
Associations that do not fund reserves at agency minimums, or new-construction budgets that haven’t matured, fail project review.
Excess Commercial Space
When too much of the building is retail, office, or other commercial use, the project falls outside agency limits.
Dues Delinquencies
Too many owners behind on HOA dues signals financial instability and trips the warrantability test.

Condo Financing


Full Picture

What Determines Your Approval

The Building’s Status
The first question we answer. Warrantable projects unlock FHA, VA, and conventional. Non-warrantable routes you to Non-QM, DSCR, or the no income verification program.
Your Credit Score
FHA (with 10% down) and VA reach down to 500, conventional starts at 620, most Non-QM condo programs start near 600, and jumbo requires 660. See credit score requirements.
Down Payment
0% on VA, 3.5% on FHA, 3%–20% conventional, and generally 10%–25% on Non-QM in exchange for accepting a non-warrantable building.
Debt-to-Income Ratio
Standard program rules apply — see debt-to-income ratio for the limits on each. DSCR condos skip personal DTI entirely and qualify on rent.
Occupancy
Primary residence, second home, or investment all have a path — but the path differs. FHA and VA are owner-occupied only; DSCR is investment only.
The HOA Questionnaire
The document that decides everything. We order it early, because how fast the association returns it usually sets your closing timeline.


Condo Financing Near You

Condo Financing by Market

We finance condos across New Jersey, Connecticut, and Florida. These pages cover the buildings, rules, and programs in specific markets.

Condo mortgages across Hoboken and the New Jersey waterfront.
Warrantable and non-warrantable condo financing across Miami-Dade.
Condo and condotel financing in Miami’s Brickell district.
Island condo financing, including non-warrantable towers.
Condo loan options across Tampa and Hillsborough County.
Condo financing across St. Pete and Pinellas County.
Condo financing with no tax returns — including condotels.
Condo financing for buyers without U.S. income or credit.
Statewide Florida condo financing with no tax returns or income docs.

Related programs: FHA loans · VA loans · conventional loans · bank statement loans · DSCR investor loans · no income verification mortgage · jumbo loans.

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Before You Start

What Happens After You Apply

  1. You send the application

    A few minutes online. No documents at this stage.

  2. A licensed loan officer calls you

    Someone on our team covering your state.

  3. We ask for documents and pull credit

    Only once you have decided to move forward.

  4. You get an approval to shop with

    Typically back within the hour.

What Clients Say

Real Reviews From Real Borrowers

Here’s what a few of our clients said about working with Mortgage-World.com.

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— Joel F.

Read more from our clients: Read More Reviews →


Common Questions Answered

Condo Financing Questions

Why is financing a condo harder than financing a house?
Because the lender has to approve two things, not one: you and the building. On a single-family home only your credit, income, and the appraisal matter. On a condo, the lender also reviews the HOA’s finances, owner-occupancy ratio, investor concentration, reserve funding, pending litigation, and commercial space. A perfectly qualified buyer can still be declined because of the building — which is why the program has to be matched to the project, not just to the borrower.
What is a warrantable vs. non-warrantable condo?
A warrantable condo meets Fannie Mae and Freddie Mac standards for owner-occupancy, investor concentration, HOA budget and reserves, litigation, and commercial space. Those buildings open up FHA, VA, and conventional financing. A non-warrantable condo fails one or more of those tests — commonly high investor concentration, active HOA litigation, short-term rental programs, or a new-construction budget that hasn’t matured. Non-warrantable does not mean unfinanceable; it means the loan has to go to a lender who reads the full condo questionnaire instead of stopping at the first flag.
Can I get an FHA loan on a condo?
Yes, if the building carries FHA project approval on HUD’s condo list, or if your individual unit qualifies under FHA’s single-unit approval option even when the whole project isn’t approved. FHA condo financing allows 3.5% down with a 580 credit score, or 10% down with a score between 500 and 579. Approval status can change, so we verify the building with HUD before recommending FHA on any specific condo.
What credit score do I need to buy a condo?
It depends on the program. FHA (with 10% down) and VA go down to a 500 credit score, conventional starts at 620, and Non-QM condo programs generally start around 600. The building matters as much as the score: FHA, VA, and conventional require a warrantable project, while Non-QM, DSCR, and no-income-verification programs can finance non-warrantable buildings.
Can I finance a non-warrantable condo?
Yes. Non-QM programs are built for exactly this — bank statement loans for the self-employed, asset-based loans for borrowers with strong reserves, the no income verification mortgage program, and DSCR loans for investment condos. These accept buildings that FHA, VA, and conventional will not, typically with a larger down payment in exchange for the flexibility.
Can I buy an investment or rental condo?
Yes. A DSCR loan qualifies an investment condo on the unit’s rental income rather than your personal income, and it works in both warrantable and non-warrantable buildings. Conventional investor financing is also available when the project is warrantable.
How long does condo financing take?
The same as any mortgage on your side — we can usually issue a real loan approval in under an hour, and we are typically clear-to-close in about 12 days. The variable is the building: the lender sends a condo questionnaire to the HOA, and how fast the association returns it often sets the pace. We order it early for that reason.
What is a condo questionnaire, and who fills it in?
It is a form the lender sends to the HOA or its management company, and the HOA completes it — not you. It asks how many units are owner-occupied, how many owners are behind on dues, what is in the reserve fund, whether there is litigation, and how much of the building is commercial space. The answers decide which programs are open. It is also the step most likely to hold a file up, because the timeline belongs to the association rather than to the lender.
Does the building have to be on the FHA approved list?
For a standard FHA condo loan, yes — the project has to carry FHA approval, and you can look a building up on HUD’s condo approval list before you make an offer. There is a second route: FHA single-unit approval can qualify an individual unit in a project that is not approved as a whole. Stick-built site condos do not need HRAP or DELRAP approval at all.
Can I finance a condotel?
Yes, through Non-QM rather than agency financing. A condotel — a unit in a building run with hotel-style services, a rental desk, or nightly bookings — is non-warrantable by definition, so FHA, VA, and conventional are closed to it. Expect a larger down payment than on a standard condo, and expect the building’s rental program to be examined as closely as your file.

Related Resources

Which Route Does the Building Allow?

Condo financingEvery route, warrantable or notYou are hereFHALowest down payment, approved projects onlyCompareDSCRInvestment units, qualified on the rentCompareNo income verificationWhen the building passes and the paperwork does notCompare
Related Condo ProgramsMiamiGet pre-approved
Condo Financing — Mortgage-World.com, NMLS #1630225Mortgage-World.com
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Office
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What You Need
✓580 for the 3.5% down tier, 500 with 10%
✓A non-warrantable building still has routes
✓The HOA questionnaire drives the answer
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Chris Luis, Broker/Owner of Mortgage-World.com

Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author

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